Stabilising the Oscillations between Consumption Practices and Circular Economy Business Models : A case study of a circular economy-based offering through collaboration within textile industry

The surges in the deterioration on all fronts of sustainability have led to the conceptualization of the Circular Economy (CE). The compliance of production and consumption tightly knitted with the linear model has created a much-needed debate as well as a barrier to the transition towards the CE. In order to drive the transition from linear to CE, various typologies of CE business models have been derived. The Product-Service System (PSS), a business model for creating a circular flow of materials, necessitates the transformation of consumers from being owners into mere users. The textile industry, where the use of virgin materials is deemed to be a primary component for its production and consumption, requires the ingestion of CE-based business models. However, such a transition requires a constant and conscious effort from various actors as well as consumers. The study takes a holistic perspective targeting both the PSS provider as well as the consumers in providing an understanding of frictions that occur between a PSS Business model and the existing consumption practices. As different actors form a network to drive a PSS business model, this study, firstly aims to develop an understanding of the interactions that take place between two different actors who aim to develop a PSS business model within the domain of textiles. Secondly, as there tend to be consumers who oppose business models that change their existing habits and routines, one such as PSS, this study focuses on analyzing the existing practices related to the consumption of textiles. By contemplating between the consumption side and the PSS provider side, the thesis concludes with a model on how a PSS business model can be made to stabilize the differences with respect to consumption practices by taking into account the factors that influence the consumption of a product